OF  THK 

PRESIDENT,  DIRECTORS,  &c, 

OP   THK 

JHiMgraiife  %.  %mk  Cn., 

TO    THB 

STOCKHOLDERS. 

Oct.    6th,    1863. 


AUGUSTA,  GA : 

CONSTITUTIONALIST      PRIST. 

1862. 


O^SSLPCOU^'^P 


PRESIDENT,  DIRECTORS,  &C. 


MMgmlle  H  Hna&  €% 


STOCKHOLDERS. 


Oct.    6th,    1863. 


AUGUSTA,  GA; 

CONSTITUTIONALIST     PBINT. 
1882.      . 


PRESIDENT'S  REPORT. 


Office  Milledgeville  Railroad  Co.,      ) 
Augusta,  October  6,  1862. ) 
To  the  Stockholders : 

At  the  last  annual  meeting,  it  was  expected  that 

the  road  would  be  stopped  at  Sparta.    For  reasons 

stated  in  the  annual  report,   it  was  thought  that 

the  policy  would  be  forced  upon  the  Company  of 

suspending  further  calls  upon  the  Stockholders — 

selling  the  surplus    iron  for    the   road    beyond 

Sparta,  and  arresting  the  road  at  that  point  until 

a  more  auspicious  period  for  its  further  progress. 

This  policy  was  very  unacceptable  to  a  majority 

of  the  Stockholders,  and  it  was  considered  the 

duty  of  the  Directors  to  make  further  efforts  to 

provide  means  and  go  on  with  the  work.    The 

Company  had  purchased  and  paid  for  the  iron  to 

reach  Milledgeville,  and  by  great  exertions,  an  ads 

dition  was  made  to  the   stock  subscriptions  of 

about  $400,000.    Circumstances  referred  to  by  the 

Engineer  in  his  report,  caused  labor  to  be  unexx 

v    pectedly  abundant  about  the  first  of  Jannary,  and 

-b  the  means  provided,  were,  by  his  estimate,  deemed 

T"  fully  sufficient  to  complete  the  work  to  Macon.— 

vjo  Nothing  seemed  necessary  to  ensure  the  rapid  and 

F*"  uninterrupted  progress  of  the  work  to  completion, 

-except  the  iron  for  the  road  from  or  near  Milledge*. 


rille  te  Macon;  and  it  was  hoped  that,  before  the 
road  should  reach  that  point,  the  ports  would  be 
opened,  and  that  the  iron  could  be  procured  in 
time  for  uninterrupted  progress.  At  any  rate 
Milledgeville  would  hare  been  an  important  and 
profitable  point,  as  stated  by  the  Engineer,  and 
the  road  completed  to  that  point,  would  have  an* 
swered  many  of  the  most  important  objects  for 
which  the  main  enterprize  was  designed. 

Under  these  circumstances  the  Board  deemed  it 
an  imperative  duty  to  the  Stockholders  and  to  the 
country  to  proceed  with  the  work,  and  the  whole 
road  to  Macon  was  placed  under  contract  with 
responsible  contractors,  with  heavy  force,  as 
stated  in  the  Engineer's  report.  A  track-laying 
force  was  also  set  to  work  at  Warrenton,  and  but 
for  unforeseen  interruption  was  expected  to  reach 
Sparta  early  in  the  past  summer. 

Sad  experience,  however,  soon  convinced  us  of 
the  uncertainty  of  all  private  enterprises  in  the 
midst  of  the  calamities  of  war.  Early  in  April 
the  work  was  suddenly  arrested  by  the  forcible 
seizure  of  the  whole  of  the  iron  of  the  company, 
except  a  few  miles  already  laid  down,  and  a  small 
quantity  already  hauled  to  the  track  for  the  track 
laying  force  engaged  in  the  work.  The  whole 
iron  left  to  us  will  not  cover  more  than  ten  miles — 
a  distance  too  short  to  be  run  with  any  profit  to 
the  company.  In  a  time  of  war  private  rights 
are  often  made  to  yield  to  the  necessities  of  Gov* 
eminent,  but  it  must  have  been  a  most  extraordi" 
nary  public  exigency  to  justify  such  an  invasion 


of  private  rights  as  that  involved  in  the  seizure 
of  this  iron.  A  case  can  scarcely  be  conceived 
where  the  damage  would  be  greater  in  proportion 
to  the  market  value  of  the  property  seized.  It 
had  been  specially  provided  for  a  particular  pur- 
pose—was  actually  being  used  for  that  purpose- 
could  not  be  replaced  at  any  price,  and  its  loss 
not  only  involved  its  own  value,  but  the  loss  of 
profit  upon  the  entire  capital  expended  in  the 
enterprise. 

The  case  differs  nothing  in  principle,  and  but 
little  in  degree,  from  a  seizure  of  iron  upon  a  fin« 
ished  road  in  actual  operation  1  If  not  in  actual 
profitable  use,  it  was  in  the  process  of  being  made 
so,  and,  but  for  the  seizure,  would  shortly  after 
have  been  in  profitable  use  to  Sparta,  and  with 
hope  of  but  little  delay  at  that  point. 

In  view  of  the  vital  importance  to  the  company 
of  this  seizure,  thejmost  strenuous  and  persevering 
efforts  were  made  to  induce  the  Department  to 
release  at  least  a  few  hundred  tons  to  reach  Guls 
verton,  where  the  road  would  have  been  of  some 
use  to  the  citizens  of  Hancock.  But  every  appeal 
upon  this  subject  was  entirely  disregarded,  and 
the  further  appeal  recommended  by  the  Engineer 
would  be  hopeless.  Whatever  may  be  the  import- 
ance to  the  Company,  the  Department  shows  little 
disposition  to  release  iron  which  it  can  forcibly 
hold  at  3%  cents  per  pound,  when,  in  open  mars 
ket,  iron  is  worth  from  12  to  15  ! 

Under  these  circumstances  of  oppression  to  the 
Company,  it  was  reasonably   supposed    that,    at 


6 

least,  the  fair  market  value  of  the  iron  would  have 
been  allowed,  but  not  so  ;  the  iron  was  valued  by 
the  Government  agent  at  $80  per  ton,  which  it 
now  seems  was  intended  to  include  all  expenses 
and  duties !  It  was  about  the  price  of  pig  iron  at 
the  time,  was  25  per  cent,  less  than  the  market 
price  of  railroad  iron  in  the  hands  of  those  who 
had  it  to  sell,  and  is  not  half  the  value  of  the  ar- 
ticle at  present  1 

Iron,  like  other  articles,  has  been  rapidly  riss 
ing,  and  from  the  same  causes.  The  demand  is 
much  in  excess  of  the  supply,  and  whilst  the  de- 
mand is  urgent,  the  supply  cannot  be  increased 
in  consequence  of  the  blockade.  Another  cause 
of  advance  is  the  depreciation  of  our  local  cur- 
rency, compared  with  a  specie  basis,  or  foreign 
exchange.  Our  currency  is  in  good  credit  at 
home,  but  as  a  fund  to  replace  our  iron,  it  will 
serve  us  but  little  purpose.  It  will  probably 
appreciate  after  peace,  but  too  slowly  for  our 
purpose,  as  our  demand  will  be  urgent.  It  is 
impossible,  therefore,  now  to  estimate  what  our 
damage  will  be,  in  consequence  of  this  unfortu* 
nate  seizure,  but  independent  of  the  loss  of  ins 
terest  on  our  whole  expended  capital,  it  will 
probably  be  heavy. 

It  is  not  the  intention  of  the  Board  to  criticise 
harshly  the  action  of  the  Government.  In  a  time 
of  war  encroachments  upon  individual  rights  are 
often  submitted  to,  and  sometimes  necessary ; 
but  a  just  Government,  in  peace  or  war,  will 
make  these  sacrifices  as  equal  as  possible.     If  the 


exigencies  of  the  public  are  so  urgent  as  to  justify 
the  forcible  seizure  of  the  property  of  the  citizen, 
the  principle  of  indemnity  should  be  recognized, 
and  the  public  should  make  just  compensation 
for  the  injury  done.  There  is  no  justice  or  pro- 
priety in  making  individuals  or  classes  the  vic- 
tims of  a  forced  economy  for  the  benefit  of  the 
rest  of  their  fellow  citizens.  After  some  hesitas 
tion,  it  was  deemed  best  to  accept  the  amount  ofs 
fered  by  the  Government  officials  in  this  exparte 
and  oppressive  proceeding,  and  appeal  to  the 
justice  of  Congress  for  at  least  some  mitigation 
of  the  losses  thus  forced  upon  the  Company, 
Full  indemnity  for  the  damage  done  us  we  do  not 
expect,  but  that  the  market  .price  of  iron  at  the 
time  of  seizure  will  at  least  be  awarded  to  us,  we 
do  hope  and  expect. 

As  contracts  had  been  made,  we  had  no  alter- 
native but  to  proceed  with  the  work,  and  the 
work  of  preparing  the  road-bed  is_  making  satis- 
factory progress.  The  grading  to  Milledgeville 
will  be  done  in  a  few  months,  and  the  whole 
roadsbed  to  Macon  will  probably  be  done  during 
the  next  year.  There  is,  however,  now  no  object 
in  pushing  the  work.  We  cannot  replace  our 
iron  until  peace  shall  be  again  restored -to  the 
country.  If  to.be  purchased  now,  it  would  cost 
us  $250  per  ton,  and  after  procured,  would  most 
likely  be  seized  by  the  Government.  This  state 
of  uncertainty  is  not  very  encouraging,  but  the 
position  has  been  forced  upon  us,  and  we  can  only 
submit.    The  policy  will  be  to  finish  the  road-bed 


8 

complete,  ready  for  the  iron,  and  on  the  restoras 
tion  of  peace,  to  purchase  the  iron,  and  complete 
the  work  as  rapidly  as  possible.  For  this  pur« 
pose  our  stock  subscriptions  are  believed  to  be 
ample.  They  now  amount  to  over  $1,600,000, 
which  making  all  fair  allowances  for  loss,  will 
more  than  cover  the  estimate  of  the  Engineer,  in- 
dependent of  outfit,  and  should  furnish  a  part  of 
that. 

Should  the  former  prosperity  of  the  country  be 
restored  bv  peace,  the  Directors  have  full  confi« 
dence  that  the  road,  on  completion,  will.be  a  profit- 
able one  to  the  Stockholders,  besides  answering 
all  the  valuable  purposes  designed  by  its  original 
projectors.  The  line  from  Vicksburg  to  Mont* 
gomery  is  making  rapid  progress,  and  will  soon 
be  completed  to  Selma;  and  the  short  road  from 
Greensborough,  N.  C,  to  Danville,  Va.,  is  also 
progressing  under  the  auspices  of  the  Confederate 
States.  These  roads  are  important  to  our  road, 
as  hastening  the  line  between  Richmond  and  the 
Southwest  and  the  Gulf  States,  For  further  de- 
tails, the  Stockholders  are  refen  ed  to  the  report 
of  the  Engineer  and  the  financial  statement  of 
the  Treasurer,  hereto  annexed.  I c  will  be  seen 
by  the  latter  document  that  the  Company  is  well 
supplied  with  ready  means'.  In  fact,  the  Stock* 
holders  have  paid  rather  faster  than  was  desir* 
able,  and,  to  save  interest,  $100,000  of  South  Caro- 
lina Railroad  bonds  were  purchased  at  a  premium 
of  10  per  cent.,  which  could  now  be  sold  for  a 
considerable  profit. 

In  behalf  of  the  Directors, 

Jno.  P.  King,  President. 


CHIEF  ENGINEER'S  REPORT. 


October  1st,  1862. 
To  the  President  and  Board  of  Directors: 

Gentlemen— The  operations  in  the  Engineering 
Department  are  herewith  respectfully  submitted  : 

The  work  of  graduation  since  the  last  Report  has 
been  vigorously  continued,  not  only  with  the  forces 
then  on  the  road,  but  with  large- additions.  Not- 
withstanding the  hesitation  and  distrust  felt  by  all 
at  the  commencement  of  the  work,  the  policy  of 
the  Board  in  ordering  the  extension  has  been 
shown  to  be  judicious,  and  has  been  attended 
with  the  happiest  results.  The  caution  of  other 
companies  inducing  them  to  suspend  and  curtail 
operations,  rendered  work  difficult  to  be  obtained, 
and  enabled  us  to  let  our  contracts  to  advantage. 
The  line  between  Sparta  and  Macon  was 
contracted  to  Messrs.  Orr,  Lockett,  Thomp- 
son, Jossey,  Collins,  Phillips  and  Gil- 
bert, Lane  and  Brown,  Culver,  Bowen,  and 
some  smaller  contractors.  The  forces  now  en* 
gaged  on  the  road  number  one  thousand  hands, 
working  two  hundred  and  ten  carts.  The  pri- 
ces paid  are  the  same  as  those  under  the  first 
contracts,  with  a  variation  only  in  the  mode  of 
payments,  the  price  being  sixteen  cents  per  cubic 
yard  each  way,  without  reference  to  haul,  three 
eights  to  be  taken  in  the  stock  of  the  company, 
thereby  increasing  subscription  to  the    capital 


10 

stock  to  that  extent.  The  time  designated  for 
the  completion  of  the  work  is  1st   January,  1864. 

With  the  large  force  mentioned  above  we  have 
made  great  progress,  and  I  am  pleasedito  report 
the  completion  of  the  graduation,  masonry  and 
bridging  of  the  line  between  Warrenton  and  Spar- 
ta, twentysone  miles.  Two  small  points  of  rock 
remain  in  cuts  near  Culverton,  which  could  not 
be  removed  for  want  of  powder. 

The  grading  and  masonry  between  Sparta  and 
Miledgeville  is  also  well  advanced,  being  fully 
twosthirds  finished.  Some  of  the  contractors 
have  already  completed  their  work  between\these 
points,  and  moved  their  forces  west  of  Milledge- 
ville.  Others  will  soon  follow,  and  should  noths 
ing  unforeseen  occur,  we  may  look  forward  with 
certainty  to  the  completion  of  the  graduation  by 
the  time  prescribed  by  the  contract.  The  grading 
of  these  seventy-five  miles  is  as  heavy  as  that  of 
any  other  running  road  in  the  State,  and  the  exes 
cution  of  such  a  work  during  the  gloomiest  days 
of  our  revolution  may  well  exceite  admiration. 

The  line  between  Warrenton  and  Sparta  crosses 
many  large  creeks  and  streams  running  into  the 
Ogeeche,  as  also  the  river  itself.  A  Howe  truss 
bridge  on  granite  piers  spans  the  river,  but  in 
crossing  the  other  streams,  Golden,  Whetstone, 
Rocky  Comfort,  Ivey  Branch,  Long,  Howell,  Fuls 
som,  Dry,  Little  Ogeeche,  and  Two  Mile  Creeks,  I 
was  compelled  to  resort  to  trestle  work,  not  in 
consequence  of  difficulty  in  procuring  material 
for  the  heavy  embankments,    but  also  from  the 


11 

inability  of  building  the  arched  culverts  neces* 
sary  for  passing  these  streams.  With  the  corn* 
pletion  of  the  track  this  work  can  be  economical- 
ly done,  however,  by  using  cars  for  filling  the 
embankments  and  procuring  the  rock  for  the  culs 
verts  from  the  more  convenient  quarries.  The 
culverts  will  be  ten  in  number,  ranging  from  fir- 
teen  to  thirty  feet  span;  the  amount  of  two  bun* 
dred  and  fifty  thousand  yards  of  earth  will  be  res 
quired  foi^ making  the  embankments.  The  mas 
sonry  between  Sparta  and  Milledgeville  can  be^ 
made  thorough,  and  there  will  be  but  five  hun- 
dred feet  of  this  temporary  and  objectionable 
trestle,  this  over  Town  and  Rocky  Creeks.  In 
consequence  of  the  line  following  a  ridge  to  the 
Oconee;  small  square  culverts  will  suffice  for  the 
drainage. 

The  Oconee  -river  will  be  crossed  by  a  Howe 
bridge  of  five  hundred  feet;  it  being  useless  to  at* 
tempt  the  erection  of  the  bridge  at  this  time,  we 
shall  put  up  the  piers  and  abutments  for  the 
same.  A  similar  course  will  be  adopted  in  refer- 
ence to  the  bridging  between  Milledgeville  and1 
Macon. 

The  progress  of  the  track  laying  has  not  kept 
pace  with  that  of  the  grading;  we  have  but  seven 
miles  laid  and  rnnniug.  Our  iron,  with  the  ex- 
ception of  ten  miles,  was  seized  by  the  Governs 
ment  in  April  last,  and  we  have  had  no  induces 
ment  to  put  down  the  small  balance  on  hand. — 
We  therefore  brought  our  track-laying  to  a  close,, 
and  have  devoted  the  dry  months  of  the  summer 


12 

to  clearing  with  the  train  some  wet  cats  near 
Warrenton.  So  soon  as  the  approach  of  winter 
shall  stop  this  work,  we  will  resume  the  track 
laying,  and  can  finish  to  the  Ogeechee  in  two 
weeks  time.  Unless  some  arrangement  can  be 
made  with  the  Government  to  release  five  or  ten 
miles  of  iron,  so  that  we  may  reach  either  CnU 
verton  or  Sparta,  I  doubt  the  policy  of  running 
regular  trains  over  this  short  distance  to  the 
Ogeechee. 

The  seizure  of  the  iron  has  been  a  serious  draw- 
back to  the  road,  as,  without  the  track ,  the  work 
expended  on  the  grading  would  be  dead  capital. 
Gould  we  hare  made  a  connection  with  the  Cena 
tral  Railroad  at  Milledgeville,  as  anticipated  when 
the  iron  was  purchased,  we  should  have  done  a 
good  business. 

The  right  of  way  has  been  secured  from  War* 
renton  to  Milledgeville,  except  in  three  or  four 
instances.  The  city  of  Milledgeville  has  donated 
to  the  Company  the  free  passage  through  the 
oity  lots  and  streets,  and  many  parties  between 
Milledgeville  and  Macon  have  also  granted  us  the 
right  of  way.  I  am  happy  to  state  that  the  lib- 
erality shown  in  the  matter,  by  all  on  the  line, 
attest  their  interest  in  the  success  of  the  road. 

The  Central  Railroad  has  generously  acceded  to 
a  proposition  for  a  junction  of  tracks  and  an  ex* 
change  of  freight  and  passengers  in  Milledge* 
ville;  a  measure  of  great  convenience  to  the 
public,  and  of  mutual  advantage  to  each  road. 

Ths  statement  attached  shows  the  amount  of 


13 

payments  at  the  date  of  the  last  estimate  on  the 
10th  August;  to  this  must  be  added  the  amount 
due  on  the  10th  of  this  month,  approximately 
fifty  thousand  dollars : 

Graduation  and  masonry $360,415  45 

Bridge  and  trestling 21,000  00 

Superstructure  of  bridges 1,025  27 

Spikes 2,293  41 

Laying  Track 2,890  00 

Cross-ties 3,037  73 

Division  Houses 537  36 

Rightof  way 6,686  73 

Real  estate 12,884  00 

Iron  rails,  say  for  ten  miles 42,500  00 

Engineering 20,000  00 

474,269  95 
Addasabove 50,000  00 

Total 514,269  95 

A  portion  of  the  line  near  Macon  not  being  de- 
finitely located,  I  cannot  present  any  more  accu* 
rate  statements  of  the  cost  of  the  whole  road  than 
has  been  hitherto  submitted,  but  the  progress  of 
the  work  thus  far  shows  that  it  will  vary  but  little 
from  the  first  estimate. 

Very  respectfully,  gentlemen, 

Your  obedient  servant, 
Geo.  H.  Hazlehuest, 
Chief  Engineer. 


14 

SECRETARY  &  TREASURER'S  REPORT. 

STATEMENT  OF  THE  RECEIPTS  OF  THE  MILLEDGEVILLE 
RAILROAD    COMPANY  TO  THE  4TH  OF  OCT'R,  1862. 

Ain't  Rec'd  from  Stockholders  on  ac-» 

countof  Stock $651,938  34 

'  Am't  rec'd  from  Thomas  M.  Turner,for 

Stockholders  in  Hancock  county. .      23,228  50 

Rec'd  from  sale  of  railroad  iron 28,039  67 

Rec'd  from  Confederate  Government 
for  railroad  iron  seized,  in  Bonds 
$92,000,  Treasury  Notes  $144,743* 
42 236,743  42 

Rec'd  interest  account 1,607  68 

Total  amount $941,557  «1 

STATEMENT  OF  THE  DISBURSEMENTS  OF  THE  MILLEDGE- 
VILLE RAILROAD  COMPANY,  TO  THE  4TH  DAY  OF  OC- 
TOBER, 1862. 

Graduation $360,415  45 

Bridging  and  Trestling 21,000  00 

Superstructure  of  Bridges 1,025  27 

Spikes 2.293  41 

TrackLaying 2,890  00 

Cross-Ties 3,037  73 

Division  Houses 537  36 

Rightof  Way 6,686  73 

RealEstate 12,884  00 

Engineering 20,000  00 

Iron  Rails 184,928  19 

Office  Expenses  and  Salaries 4,481  33 

Incidental  Expenses 872  13 

Interest  Account 3,612  68 

Masonry  of  Bridges ,  70  00 

Total $624,734  28 

Deduct  stock  received  in  the  hands  of 
the  Company  as  per  contract  with  D. 
W.  Orr  and  others 39,447  78 

585,286  50 


15 


ASSETS  IN   HANDS    OF  THE  MILLEDGE VILLE    RAILROAD 
COMPANY,  OCT.  4,  18B2. 

South  Carolina  Railroad  Bonds  and 

interest- $111,638  35 

Confederate  States  8  per  cent.  Bonds.     92,000  00 
"             "      7.30  per  cent.  Trea- 
sury Notes 144,743  42 

Wm.  Mays'  note  for  stock 2,500  00 

C.  Battles'  note 100  00 

Cash  balance  in  Q.  R.  R,  Bank 5,289  34 

$356,271  11 

Receipts : $941,557  61 

Disbursements $585,286  50 

Assets 356,271  11    941,557  61 

Respectfully  submitted, 
~'    •'    ..  .  W.  Milo  Olin, 

Secretary  and  Treasurer. 


BOARD  OF  DIRECTORS. 


JOHN  P.  KING,  President. 

BENJ.  H.  WARREN,       WM.  H.  GOODRICH, 


HENRY  H.CUMMING, 
STEPHEN  D.  HEARD, 
HENRY  MOORE, 
M.  H.  WELBORN, 


JOHN  D.  SMITH, 
ROBERT  H.  MAY, 
THOS.  M.  TURNER, 
M.  S.  THOMPSON, 


B.  B.  DeGRAFFENREID. 


I*  * 


